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‘Decisive battle’ looms for China EVs

Nov 28, 2024, 8:34am EST
East Asia
Workers check the EV cars inside BYD’s first electric vehicle factory in Southeast Asia
Chalinee Thirasupa/File Photo/Reuters
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China’s EV market, the world’s biggest, will likely see a renewed price war next year, a leaked document indicated.

The automotive behemoth BYD asked a supplier to cut its prices by 10% in 2025, with a senior executive forecasting a “decisive battle,” a memo circulated on the internet in China showed.

Years of slashing prices have accelerated the adoption of EVs and hybrids in China, but also narrowed carmakers’ margins, driving a broader industry consolidation.

The impact of China’s rapid EV growth has been deep and global: One brokerage projects gasoline consumption falling in the country by up to 5% annually for the next several years, while historically dominant carmakers in Japan and Europe are fast losing market share.

A column chart showing global EV stock by country
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